Preference Shares Liabilities
|3 Months Ended|
Mar. 31, 2021
|Preference Shares Liabilities [Abstract]|
|Preference Shares Liabilities||
11. PREFERENCE SHARES LIABILITIES
Preference shares liabilities amounting to zero as of March 31, 2021 and December 31, 2020, represented the Company’s obligation to purchase in 2020 the preference shares from certain employees of Solutions Infini as a part of the Solutions Infini 2018 Purchase Agreement.
During fiscal year 2020, following the agreement with the eligible employees of the preference shares to pay performance bonuses for a total amount of $3.5 million, as a replacement of the preference shares obligation, the performance bonus obligation payable to the eligible employees was paid in two different installments of $1.4 million on August 31, 2020, and of $883,000 on November 30, 2020.
On February 3, 2021, the previously outstanding performance bonus obligation payable to the eligible employees was agreed to be paid in two different installments of $826,000 on February 15, 2021 and $340,000 (at the March 31, 2021 exchange rate) on April 15, 2021, under the full and final settlement agreements signed with the eligible employees. See Note 21 – Subsequent Events – for further details.
As of March 31, 2021, the outstanding performance bonus obligation payable to the eligible employees amounted to $340,000. This amount is included in the condensed consolidated balance sheets line item “Payroll and payroll related accrued liabilities”.
The entire disclosure for terms, amounts, nature of changes, rights and privileges, dividends, and other matters related to preferred stock.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef